SEC v. Historic Asset Placement Services Global, LLC; Billy W. Abshier; Christopher W. Abshier; Frederic A. Gladle; Ronald Josh Pendley; Kevin E. Scannell, et al., No. LR-26196, Central District of California (Dec. 17, 2024) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26196 / December 17, 2024 Securities and Exchange Commission v. Historic Asset Placement Services Global, LLC, et al., 2:24-CV-10745 (C.D. Cal. filed Dec. 13, 2024) SEC CHARGES DEFENDANTS IN MULTI-MILLION DOLLAR HISTORICAL BONDS SCAM Fraud Based on Non-Existent Process for Redeeming Bonds Issued by the German Weimar Republic and Pre-Revolutionary China and Russia The Securities and Exchange Commission on December 13, 2024 filed charges against eight defendants for their roles in connection with the fraudulent offer and resale of historical bonds issued by the German Weimar Republic and pre-revolutionary China and Russia and the fraudulent and unregistered offer and sale of securities whose value was tied to such bonds. The defendants are Historic Asset Placement Services Global, LLC (HAPS) and its day-to-day operations manager, Billy Abshier, both of Temple, Texas; HAPS’ former managing member, Christoper W. Abshier, of Troy, Texas; Frederic (Fred) A. Gladle of Lakeway, Texas; Ronald Josh Pendley of Toluca Lake, California; Kevin E. Scannell of Santa Monica, California; and two entities Pendley and Scannell controlled, Sovereign Debt Solutions LP and its general partner, Ocean Park Partners, both located in Los Angeles, California. The complaint names as a relief defendant Barbara Gladle, the spouse of Fred Gladle. The SEC’s complaint alleges that between January 2017 and August 2023, the scheme raised more than $3.85 million from at least 85 investors. As alleged in the complaint, HAPS and the Abshiers falsely claimed that HAPS had a process for redeeming historical bonds that involved working with U.S. and foreign governments and well-known financial and accounting firms. The complaint further alleges that, in reselling the historical bonds, the Gladles, Pendley, and Scannell made misleading statements regarding the value of the historical bonds and repeated, sometimes embellishing, HAPS’s false claims of a redemption process. Among defendants’ allegedly false statements were the claims that investors would receive redemption proceeds of up to $15 million for their bonds with an advance payment of $250,000. The complaint alleges that the purported redemption process was a sham, no advance payment of $250,000 was ever made, and no historical bonds were ever redeemed using the HAPS process. The complaint further alleges that Pendley, Scannell, Sovereign Debt Solutions, and Ocean Park Partners engaged in the fraudulent and unregistered offering of promissory notes and limited partnership interests thereunder, the value of which was tied to the redemption of historical bonds placed with HAPS. Allegedly based on the same false representations and omissions, Pendley, Scannell, Sovereign Debt Solutions, and Ocean Park Partners raised $103,500 from eight investors between 2017 and 2022. In addition to the foregoing, Christopher W. Abshier and HAPS also allegedly impeded HAPS’ clients from reporting their misconduct to the SEC. Further, by engaging in the business of buying and reselling historical bonds for their own accounts, Fred Gladle and Pendley allegedly acted as unregistered dealers. The SEC’s complaint charges all the Defendants with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Fred Gladle, Pendley, Scannell, Sovereign Debt Solutions, and Ocean Park Partners with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933. The SEC’s complaint also charges Pendley, Scannell, Sovereign Debt Solutions, and Ocean Park Partners with violating the offering registration provisions of Sections 5(a) and (c) of the Securities Act, as well as Fred Gladle and Pendley for violating the broker-dealer registration provisions of Section 15(a)(1) of the Exchange Act. Christopher Abshier and HAPS are also charged with violating the whistleblower protection provisions of Rule 21F-17 under the Exchange Act. The SEC’s complaint seeks a permanent injunction against all the Defendants, officer and director bars against Fred Gladle, Pendley, Scannell, and Christopher Abshier, conduct-based injunctions against Pendley, Scannell, Fred Gladle, and the Abshiers, disgorgement plus prejudgment interest from Fred and Barbara Gladle, Pendley, and Scannell, and civil penalties against Fred Gladle, Pendley, Scannell, and the Abshiers. The SEC's investigation was conducted by Ryan Farney and John J. Dempsey under the supervision of Nina B. Finston and Stacy L. Bogert. The litigation will be led by Oren Gleich under the supervision of James Carlson with the involvement of Douglas M. Miller as local counsel. Any person with information related to this matter may contact the SEC staff by sending an email to [email protected] or by calling (202) 551-5022.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26196 / December 17, 2024 Securities and Exchange Commission v. Historic Asset Placement Services Global, LLC, et al., 2:24-CV-10745 (C.D. Cal. filed Dec. 13, 2024) SEC CHARGES DEFENDANTS IN MULTI-MILLION DOLLAR HISTORICAL BONDS SCAM Fraud Based on Non-Existent Process for Redeeming Bonds Issued by the German Weimar Republic and Pre-Revolutionary China and Russia The Securities and Exchange Commission on December 13, 2024 filed charges against eight defendants for their roles in connection with the fraudulent offer and resale of historical bonds issued by the German Weimar Republic and pre-revolutionary China and Russia and the fraudulent and unregistered offer and sale of securities whose value was tied to such bonds. The defendants are Historic Asset Placement Services Global, LLC (HAPS) and its day-to-day operations manager, Billy Abshier, both of Temple, Texas; HAPS’ former managing member, Christoper W. Abshier, of Troy, Texas; Frederic (Fred) A. Gladle of Lakeway, Texas; Ronald Josh Pendley of Toluca Lake, California; Kevin E. Scannell of Santa Monica, California; and two entities Pendley and Scannell controlled, Sovereign Debt Solutions LP and its general partner, Ocean Park Partners, both located in Los Angeles, California. The complaint names as a relief defendant Barbara Gladle, the spouse of Fred Gladle. The SEC’s complaint alleges that between January 2017 and August 2023, the scheme raised more than $3.85 million from at least 85 investors. As alleged in the complaint, HAPS and the Abshiers falsely claimed that HAPS had a process for redeeming historical bonds that involved working with U.S. and foreign governments and well-known financial and accounting firms. The complaint further alleges that, in reselling the historical bonds, the Gladles, Pendley, and Scannell made misleading statements regarding the value of the historical bonds and repeated, sometimes embellishing, HAPS’s false claims of a redemption process. Among defendants’ allegedly false statements were the claims that investors would receive redemption proceeds of up to $15 million for their bonds with an advance payment of $250,000. The complaint alleges that the purported redemption process was a sham, no advance payment of $250,000 was ever made, and no historical bonds were ever redeemed using the HAPS process. The complaint further alleges that Pendley, Scannell, Sovereign Debt Solutions, and Ocean Park Partners engaged in the fraudulent and unregistered offering of promissory notes and limited partnership interests thereunder, the value of which was tied to the redemption of historical bonds placed with HAPS. Allegedly based on the same false representations and omissions, Pendley, Scannell, Sovereign Debt Solutions, and Ocean Park Partners raised $103,500 from eight investors between 2017 and 2022. In addition to the foregoing, Christopher W. Abshier and HAPS also allegedly impeded HAPS’ clients from reporting their misconduct to the SEC. Further, by engaging in the business of buying and reselling historical bonds for their own accounts, Fred Gladle and Pendley allegedly acted as unregistered dealers. The SEC’s complaint charges all the Defendants with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Fred Gladle, Pendley, Scannell, Sovereign Debt Solutions, and Ocean Park Partners with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933. The SEC’s complaint also charges Pendley, Scannell, Sovereign Debt Solutions, and Ocean Park Partners with violating the offering registration provisions of Sections 5(a) and (c) of the Securities Act, as well as Fred Gladle and Pendley for violating the broker-dealer registration provisions of Section 15(a)(1) of the Exchange Act. Christopher Abshier and HAPS are also charged with violating the whistleblower protection provisions of Rule 21F-17 under the Exchange Act. The SEC’s complaint seeks a permanent injunction against all the Defendants, officer and director bars against Fred Gladle, Pendley, Scannell, and Christopher Abshier, conduct-based injunctions against Pendley, Scannell, Fred Gladle, and the Abshiers, disgorgement plus prejudgment interest from Fred and Barbara Gladle, Pendley, and Scannell, and civil penalties against Fred Gladle, Pendley, Scannell, and the Abshiers. The SEC's investigation was conducted by Ryan Farney and John J. Dempsey under the supervision of Nina B. Finston and Stacy L. Bogert. The litigation will be led by Oren Gleich under the supervision of James Carlson with the involvement of Douglas M. Miller as local counsel. Any person with information related to this matter may contact the SEC staff by sending an email to [email protected] or by calling (202) 551-5022.